HONG KONG, March 1 (Reuters) - Hong Kong and China shares
saw their weekly gains reduced on Friday after Chinese
manufacturing data came in below expectations and was the
weakest since September.

Friday's losses came after stocks had their biggest daily
gains in weeks the previous day. Chinese insurers slid after
China Life Insurance , the sector's largest
player, warned of a 40 percent decline in 2012 net profit.

The Hang Seng Index shed 0.6 percent to 22,880.2,
paring this week's rise to 0.4 percent. The China Enterprises
Index of the top Chinese listings shed 0.8 percent on
the day, but inched up 0.2 percent this week.

In the mainland, the CSI300 of the top Shanghai
and Shenzhen A-share listings inched down 0.2 percent, while the
Shanghai Composite Index slipped 0.3 percent. This week,
they rose 2.8 and 2 percent, respectively.

"The China PMI today wasn't much of a deal, but coming after
Thursday's strong gains, it was a catalyst for some profit
taking," said Jackson Wong, Tanrich Securities' vice-president
for equity sales.

Growth-sensitive counters were broadly weaker after China's
official Purchasing Managers' Index (PMI) eased to 50.1 after
seasonal adjustments. The five-month low was weaker than a 50.2
Reuters poll consensus and down from January's 50.4 level.

Shares of Citic Pacific dived 5.5 percent in Hong
Kong, hit by target price reductions from brokerages including
Bank of America-Merrill Lynch, Citi and UBS. Targets were cut
after the steel-to-property conglomerate posted disappointing
full year 2012 results on Thursday.

Citic Pacific, whose shares have fallen each of the past
three years, is now down 2.6 percent in 2013. Citi analysts said
the company remains highly geared and will need to borrow more
given its current capital expenditure and annual dividend
commitments.

Losses in Shanghai came in volume just shy of its 20-day
moving average as China's key money rate stormed to its highest
level this year on Friday. The rate's rise increased worries
about policy tightening as the central bank looks to restrain
bank lending.

Chinese banks were among the biggest index drags. Industrial
and Commercial Bank of China shed 0.9
percent in Hong Kong and 1 percent in Shanghai. China Life
Insurance lost 0.6 percent in Hong Kong and 2.9 percent in
Shanghai.

Chinese property counters were also weak on renewed
tightening fears after a private survey showed average home
prices in the 100 biggest cities rose for the ninth straight
month in February, though the pace of increase slowed.

China's property market has been rife with speculation about
rising house prices and what the country's new leadership may do
to curb them once it takes office next week, testing investors'
nerves.

The annual Chinese People's Political Consultative
Conference and National People's Congress, where Xi Jinping is
expected to be confirmed as president, start in Beijing on March
3 and 5, respectively.